Fact Book 2015 www.continental-corporation.com
© Continental AG
Fact Book 2015 | 1
Contents I.
Continental at a Glance
Slide
Title
Page
1
Disclaimer
8
3
More than 140 Years of Progress and Achievement
9
4
Continental Corporation – Sales, EBIT & Net Income
9
5
Continental Ranks No. 2 in Worldwide Supplier Ranking
10
6
Executive Board
10
7
Megatrends in the Automobile Industry
11
8
A Leading Global Supplier for Key Automotive Electronics Applications
11
9
A Leading Global Supplier of Tire and Non-Tire Rubber Products
12
10
Sales by Market
12
11
EBITDA by Group and Corporation
13
12
Consolidated Sales
13
13
Number of Employees
14
II.
Continental Strategy
Slide
Title
Page
15
Corporate Strategy at a Glance
15
16
Sustainable Value Creation
15
17
Cost Consciousness – Production in Best-Cost Countries
16
18
Balanced Distribution of Sales
16
19
Top Position for the 20 Fastest Growing Automotive Technologies through 2020
17
20
Continental Corporation Worldwide
17
21
Sales OE Automotive/Non-OE Automotive
18
22
Technological Balance
18
23
The Same Values Worldwide for a Shared Corporate Culture
19
© Continental AG
Fact Book 2015 | 2
Contents III.
Automobile Megatrends
Slide
Title
Page
25
We Shape the Megatrends in the Automobile Industry
20
26
Environment: Initiatives in EU, USA and Japan – Towards Lower CO2 Emissions
20
27
Environment: Initiatives for Cleaner Mobility in Various Markets
21
28
Environment: Today’s Vehicle Emissions vs. Future Targets
21
29
Environment: Engine Development Roadmap
22
30
Environment: Reduction of CO2 Emissions: Solutions by Continental
22
31
Environment: How to Reach the European CO2 Target of 75g/km
23
32
Information: Interior: Examples of Market-Specific Initiatives and Projects
23
33
Information: Interior: Information Management – in the Vehicle and Beyond
24
34
Information: Interior: Product Highlights for Intelligent Mobility
24
35
Safety: Market-Specific Initiatives – Towards Safer Mobility
25
36
Safety: Road Traffic Deaths per 100,000 Inhabitants by Region
25
37
Safety: Global Development of Active Safety Regulations & Ratings
26
38
Safety: Euro NCAP 5 Star Rating Requirements
26
39
Safety: History and Roadmap for Accident-Free Driving
27
40
Safety: Future Automotive Trends
27
41
Safety: From Basic to Complex Scenarios; from Single to Networked Systems
28
42
Safety: World Market Forecast for Driver Assistance Systems
28
43
Safety: Winter Tire Regulations
29
44
Safety and Environment: Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil
29
45
Safety and Environment: Tire Labeling Initiatives in Gulf Countries and China
30
© Continental AG
Fact Book 2015 | 3
Contents IV.
Sustainability at Continental
Slide
Title
Page
47
Our Policies and Guidelines
31
48
Corporate Environmental Key Performance Indicators
31
49
Emission Reduction – Electrification Tailored to Fit (48-Volt Eco Drive)
32
50
Emission Reduction – Electrification Tailored to Fit
32
51
Research in Alternative Raw Materials for Tire Production
33
52
Equal Opportunity
33
53
UERÈ Project in Rio de Janeiro, Brazil
34
54
Corporate Memberships (1)
34
55
Corporate Memberships (2)
35
56
Ratings and Indices
35
57
Health and Occupational Safety
36
58
Corporate Bodies
36
V.
Continental Corporation
Slide
Title
Page
60
Key Consolidated Figures
37
61
Sales and Adjusted EBIT by Quarter
38
62
Key Historical Financials and Credit Metrics – IAS 19 (rev. 2011) applied
38
63
Net Indebtedness and Gearing Ratio
39
64
Gross Indebtedness by Source
39
65
Maturities for Syndicated Loan and Bonds
40
66
Purchasing – Production Materials 2015
40
67
Raw Material Prices
41
© Continental AG
Fact Book 2015 | 4
Contents VI.
Market Data
Slide
Title
Page
69
Installation Rates of Electronic Brake Systems
42
70
Installation Rates of Fuel Injection Systems
42
71
Development of Transmissions Technologies
43
72
Installation Rates of Turbochargers in Gasoline Engines
43
73
Installation Rates of Keyless Entry Systems
44
74
Installation Rates of Multimedia Systems
44
75
Sensors per car of Advanced Driver Assistance Systems
45
76
Rising Volumes of Head-Up Displays
45
77
Production of Passenger Cars and Light Commercial Vehicles (6t)
46
79
Replacement Tires – Passenger Cars and Light Commercial Vehicles (6t)
47
VII.
Automotive Group
Slide
Title
Page
82
Key Figures
48
83
Sales and Adjusted EBIT by Division
49
84
Sales by Market
49
85
Order Intake (LTS) in the Automotive Group €30 bn in 2015
50
86
Production of Passenger Cars and Light Trucks ( 125 ccm. ABS or combined brake system (CBS) mandatory for engine capacity of ≤125 ccm. 5 Federal Motor Vehicle Safety Standard (FMVSS) No. 126 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 6 Federal Motor Vehicle Safety Standard (FMVSS) No. 138 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 7 CONTRAN 312/2009. 8 Russia Decree 720/2009; refers to passenger cars, buses with a weight of ≤ 5 t and light trucks with a weight of ≤ 3.5 t. 9 Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan. 10 Japan expected to adopt EU regulation. Final decision on timing pending. 11 G/TBT/N/KOR/286 and MLTM Notification 2010-631 (Ministry of Land, Transport and Maritime Affairs). 35 12 Federal Motor Vehicle Safety Standards; Rear Visibility; Final Rule; 49 CFR Part 571. 2
III. Automobile Megatrend: Safety Road Traffic Deaths per 100,000 Inhabitants by Region1
Over
die A further
million people
Europe and Russia
in road accidents every year
9.3 Eastern Mediterranean
million
are injured.
17.3
15.9 26.6
Americas Data Source: World Health Organization. Global Status Report on Road Safety 2015. Road traffic fatality rates per 100.000 population by WHO region.
19.9 17.0
Western Pacific
Africa South East Asia per 100.000 population
36
© Continental AG
Fact Book 2015 | 26
III. Automobile Megatrend: Safety Global Development of Active Safety Regulations & Ratings AEB
ESC
V2X Device
RVS 2016 (10%) 2018 (100%)
Light vehicles
RVS
FCW/LDWS
CIBS & DBS
Legislation
Consumer Test
AEB Passenger vehicles
ESC
AEB & LDWS
Passenger vehicles
Commercial vehicles & buses
decided
AEB & LDWS
SAS & AEB Pedestrian
RDP & AEB Bicycle
NCAP star-rating
NCAP star-rating
AEB Intersection NCAP star-rating
Legislation
Consumer Test
NCAP star-rating
AEB & LDWS
Expected by Continental
ESC Passenger vehicles
2007
2008
2009
2010
2011
2012
2013
AEB & LDWS
Commercial vehicles & buses
2014
2015
NCAP star-rating
2016
2017
2018
2019
2020
ESC = Electronic Stability Control; FCWS = Forward Collision Warning System; LDWS = Lane Departure Warning System; AEBS = Advanced Emergency Braking System; CIBS = Crash Imminent Braking System; DBS = Dynamic Brake Support; RVS = Rearview Video System; SAS = Speed Assist System; RDP = Road Departure Protection. NCAP = New Car Assessment Program; EC = European Commission; NHTSA = National Highway Traffic Safety Administration (USA); MLIT = Ministry of Land, Infrastructure, Transport and Tourism (Japan); MLTM = Ministry of Land, Transport and Marine Affairs (South Korea); IIHS = Insurance Institute for Highway Safety.
37
III. Automobile Megatrend: Safety Euro NCAP 5-Star Rating Requirements Frontal ODB
Seat Belt Reminder
Frontal FW
ESC
Side Barrier
Speed Assist System
Side Pole Adult Occupant Protection
Whiplash Front Whiplash Rear
LDW / LKA Safety Assist
AEB Inter-Urban (23%)
AEB City (8%)
Headform Upper Legform Lower Legform Pedestrian Protection
AEB VRU (14%)
Child Occupant Protection
AEB: Autonomous Emergency Braking; NCAP: New Car Assessment Program; VRU: Vulnerable Road Users. Source: NCAP, http://www.euroncap.com, as of January 26, 2016.
38
© Continental AG
Fact Book 2015 | 27
III. Automobile Megatrend: Safety History and Roadmap for Accident-Free Driving
Construction Site Assist 2015 – 2016: • ACC longitudinal/lateral • Traffic Jam Assistant (highway) Driver • Lateral Collision Distraction Avoidance • Emergency Steering Assistant
AEB City < 50 kph
Parking Assist
AEB Pedestrian
Autonomous Driving
Automated Parking
Highway (highly automated) City Stop&Go
Construction Site (highly automated) Inter-Urban AEB > 60 kph
Highway Assist Stop&Go, Cruising, up to 130km/h
Remote parking
Partially Automated (2016) – Highly Automated (2020) – Fully Automated (> 2025) 2015 AEB = Automatic Emergency Brake. ACC = Adaptive Cruise Control.
2020
> 2025 39
III. Automobile Megatrend: Safety Future Automotive Trends
40
© Continental AG
Fact Book 2015 | 28
III. Automobile Megatrend: Safety From Basic to Complex Scenarios; from Single to Networked Systems
!
1
= Continental´s Portfolio 1
!
= In Progress 41
Head-Up Display
III. Automobile Megatrend: Safety World Market Forecast1 for Driver Assistance Systems Continental Portfolio Covers all Areas 100
Continentalʼs Portfolio
USD bn.
90 E&EA
3
80 HMI
70
Embedded Controls
60 50 40
Mapping
2018: Based on Camera, Radar and Lidar, Continental's SOM2 would be ~25%
Cameras 4
30
V2X
20
Radar
10 0 2015
Lidar
2020
Goldman Sachs Report, Cars 2025: Vol. 3; Monetizing the rise of Autonomous Vehicles; September 17, 2015. Share Of Market. Electrical & Electronic Architecture. 4 Vehicle to everything communication.
2025
1 2 3
42
© Continental AG
Fact Book 2015 | 29
III. Automobile Megatrend: Safety Winter Tire Regulations1 Europe: Winter Tires Mandatory or Situationally Mandatory Austria
November 1 to April 15 when winter weather conditions prevail
Russia
November 1 to April 1
December 1 to end of February
Bosnia and Herzegovina
Bulgaria
December 1 to 28 February
November 15 to April 1 Iceland
November 15 to April 15 when winter weather conditions prevail
Serbia
Latvia
Mandatory when winter weather conditions prevail
November 15 to March 31 when roads are snowy/icy
November 1 to April 1 Lithuania
Slovakia
Mandatory when winter weather conditions prevail
November 1 to March 31
Luxembourg
Czech Republic
December 1 to end of February Macedonia
Estonia
December 1 to end of February Finland
Norway
Mandatory when winter weather conditions prevail
Slovenia
November 15 to March 15 when winter weather conditions prevail
December 1 to March 31 when winter weather conditions prevail Sweden
Mandatory when winter weather conditions prevail; November 15 to March 31 for trucks
December 1 to April 1 for commercially used vehicles Turkey
November 1 to March 31
Germany
November 15 to March 15 when winter weather conditions prevail
November 1 to March 31
Romania
Ukraine
Europe: Winter Tires Partly Mandatory Drivers may be held liable, if they cause an accident with summer tires mounted when winter weather conditions prevail
Mandatory on certain roads, marked with signs France
Italy
Spain
Switzerland
Canada: Winter Tires Partly Mandatory Canada
Mandatory in Québec December 15 to March 15; mandatory on certain roads in the mountains of Canada when winter weather conditions prevail
The snowflake symbol: A tire can be marked with this symbol (in addition to the M+S2 marking), if its braking or traction performance on snow exceeds that of a standard reference tire by a certain margin. 1 2
Source: Continental AG and websites of country ministries, automobile associations and ETRMA (European Tyre and Rubber Manufacturers' Association). Mud + snow. The M+S marking is given by the manufacturer and is not linked to a performance definition.
43
III. Automobile Megatrend: Safety and Environment Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil EU1
USA2
Japan3
Label proposed by NHTSA3
›
Mandatory since November 2012 Applies to all tires sold. Information to be shown: rolling resistance (fuel efficiency), wet grip (braking performance on wet roads) and noise performance (external rolling noise). Either directly on the tire by means of a label or in some other way Self-certification policy EU member states are responsible for market surveillance
› ›
› ›
1
› ›
›
Final decision pending The NHTSA Tire Fuel Efficiency Consumer Information Program proposes to inform consumers about the effect of tires on fuel efficiency, safety, and durability The program aims to implement a national tire fuel efficiency rating system for replacement tires, with the information provided to consumers at the point of sale and online
South Korea4
› › › ›
›
Regulation (EC) No.1222/2009 of the European Parliament and of the Council and Commission Regulations (EU) No. 228/2011 and (EU) No.1235/2011. Also implemented in Norway, Switzerland , Turkey, Israel.
Voluntary since 2010 Introduced by JATMA4 Applies to replacement summer tires for passenger cars; includes information on rolling resistance and wet grip performance Tires with a grading of A and above for rolling resistance performance are defined as “fuel efficient tires” and are marked with an additional symbol (the lower of the symbols above)
› ›
›
›
Mandatory since November 2012 Introduced by MKE5 Applies to all tires sold in South Korea (OE and replacement) for passenger cars and light trucks; includes information on rolling resistance and wet grip performance The label has to be attached to the tread of each tire; for OE tires the information has to be provided in the car manual Registration of all products required
Brazil5
› › › ›
›
Available as of April 2015 Mandatory as of October 2016 Introduced by INMETRO6 Applies to all tires sold (with certain exceptions). Includes information on rolling resistance, wet grip and noise performance Certification to be carried out by a product certification body accredited by INMETRO
2
Source: National Highway Traffic Safety Administration (NHTSA). Source: Japan Automobile Tyre Manufacturers Association (JATMA). Source: South Korean Ministry of Knowledge Economy (MKE). 5 Source: National Institute of Metrology, Quality and Technology (INMETRO). 3 4
44
© Continental AG
Fact Book 2015 | 30
III. Automobile Megatrend: Safety and Environment Tire Labeling Initiatives in Gulf Countries and China SASO1
› › ›
›
Mandatory since November 2015 (truck tires as of Nov 2016). Applies to all replacement tires. Information to be shown: rolling resistance (fuel efficiency) and wet grip (braking performance on wet roads). Directly on the tire by means of a label. Registration of all products required
GSO2
› › ›
›
Mandatory since January 2016 (light truck and truck tires as of Jan 2017). Applies to all replacement tires Information to be shown: rolling resistance (fuel efficiency) and wet grip (braking performance on wet roads). Directly on the tire by means of a label. Registration of all products required
China
› › › ›
Voluntary as of 2017 Introduced by CRIA3 Applies to all replacement tires for passenger cars Information to be shown: rolling resistance (fuel efficiency), wet grip (braking performance on wet roads) and noise performance (external rolling noise).
Source: 1 Saudi Standards, Metrology and Quality Organization Standard 2857/2015. 2 Standardization Organization of the Gulf Cooperation Council Countries. 3 Chinese Rubber Industry Association (CRIA).
45
Topics I.
Continental at a Glance
II.
Continental Strategy
15
III. Automobile Megatrends
25
IV. Sustainability at Continental
47
V. Continental Corporation
60
VI. Market Data
69
VII. Automotive Group
3
82
VIII. Rubber Group
131
IX. Share and Bond Information
161
X. Glossary
170
46
© Continental AG
Fact Book 2015 | 31
IV. Sustainability at Continental Our Policies and Guidelines Principles of Our Corporate Social Responsibility Environmental Responsibility
Social Responsibility
Corporate Governance
ESH1 Policy – implements worldwide the responsibility for protecting the environment
Code of Conduct – standards for ethics, rules to avoid conflicts of interest
Corporate Governance Policy – to further a responsible management of the company focused on value creation
OUR BASICS – the guidelines, codex and basic principles of our business activities
Risk Report – overview of our Risk Management
OUR BASICS Our Corporate Guidelines 1
47
“Environment”, “Security, Safety” and “Health”.
IV. Environmental Responsibility Corporate Environmental Key Performance Indicators Energy consumption1
CO2 Emissions1,3
2,789
2,748 1,857 659
759
2013
1,974
662
771
2014
2,089
727
722
2015
613
2020 2
Scope 1 - direct CO₂ emissions in 1,000t Scope 2 - indirect CO₂ emissions from external power stations in 1,000t Specific CO₂ emissions (100kg/Mio € adjusted sales)
2 3
1,704
816
769
669
2013
2014
2015
2020
10,000 GJ
2
Specific energy consumption (GJ/Mio € adjusted sales)
480
437
394
2013
2014
2015
2020
84 84
2
Specific water consumption (m³/Mio € adjusted sales)
Changes to previous figures are due to changed in the data collection. Continental targets. Independently verified by KPMG.
297
291
280
487
10,000 m³
1
1,642
829
Waste production1
Water consumption1 1,616
2,998
2013
85 85
2014
76 84
2015
68
90
2020
2
Waste generation (1,000 t) Specific waste generation (100kg/Mio € adjusted sales) Waste recovery (%)
48
© Continental AG
Fact Book 2015 | 32
IV. Environmental Responsibility
Emission Reduction - Electrification Tailored to Fit (48-Volt Eco Drive)
49
IV. Environmental Responsibility Emission Reduction – Electrification Tailored to Fit
2
5
50 90kW 50- – 90
100% 100
EMR3 with Integrated Inverter
50 90kW 50- – 90
50 50--75% 75
EPF 2.8 / EPF Gen. 4 Single and Dual Inverter Technology
20- 40kW – 40 20
20- -30% 30 20
EPF 2.8 / EPF Gen. 4 Single and Dual Inverter Technology
48V
66- – 20kW 20
10 10--20% 20
Air cooled: < 10kW Water cooled: >10kW
12V
< 5kW
